Analyzing the Role of the Entrepreneurship and Innovation Ecosystem in Sustainable Urban Development of Free Trade–Industrial Zones, with Emphasis on the Smart Tourism Value Chain: A Case Study of Chabahar City

Document Type : Research Paper

Author

Assistant Professor, Department of Geography, Payam Noor University, Tehran, Iran

10.22034/grd.2026.24379.1688

Abstract

Extended Abstract



Introduction



In recent decades, the sustainable development approach has gained increasing attention as a comprehensive strategy in urban and regional planning, aiming to balance economic growth, social equity, and environmental protection. Within this framework, free trade‑industrial zones serve as a policy tool for governments to achieve regional development and strengthen integration with the global economy, established with objectives such as attracting investment, boosting exports, upgrading infrastructure, and improving social welfare. However, empirical evidence from successful countries indicates that a sole focus on physical infrastructure development, without the formation of an innovation and entrepreneurship ecosystem, not only fails to lead to sustainable growth but can also foster unproductive dependence on government resources and weaken the region’s economic dynamism. In response to the limitations of infrastructure‑centric approaches in urban and regional development, the concept of an innovation ecosystem has emerged as a new paradigm in urban and regional policy‑making, emphasizing the interaction among actors, institutions, and knowledge flows. This concept is built on a network of key players—entrepreneurs, universities, incubators, government agencies, and local communities—whose interactions shape the capacity for value creation and local competitive advantage. One of the key arenas for the emergence of such an ecosystem is the tourism industry; within the framework of smart tourism, it provides a platform for the convergence of digital technologies, data analytics, and sustainable experience‑creation, directly influencing urban planning quality, local resource management, and economic prosperity. In this context, innovation across the tourism value chain—from service production to marketing and tourist‑experience management—is recognized as a primary driver of sustainable urban development.



Materials and Methods



The present study is applied in purpose and descriptive‑analytical in execution. The statistical population comprises the main and specialized actors of the entrepreneurship and innovation ecosystem in Chabahar city, including entrepreneurs, investors, institutional officials active in business support, and academic experts related to urban development and innovation, totaling 3,000 individuals. Using Cochran’s formula, a sample of 341 individuals was selected. The data‑collection instrument was a questionnaire, whose face and content validity were confirmed by specialists and experts, and its reliability was assessed using Cronbach’s alpha coefficient. The obtained alpha values for all variables exceeded 0.70, and the overall questionnaire alpha was 0.83, indicating appropriate reliability. The study employed the independent variable of entrepreneurship ecosystem (comprising six variables: policy and governance, culture and norms, financial resources, human resources, knowledge infrastructure, and knowledge and innovation), the dependent variable of urban development, and the mediating variable of smart‑tourism value chain, along with numerous indicators and items. For data analysis, a one‑sample t‑test and multiple regression analysis were used.



Findings



The research findings were examined in descriptive and inferential sections. Descriptive results showed that 61% of respondents were male and 39% female. Regarding age, the highest frequency (32%) belonged to the 41–50‑year‑old group, while the lowest (12%) was in the over‑60 group. In terms of education, the highest frequency (36%) was at the bachelor’s level, and the lowest (8%) at the doctoral level.



Conclusion



The examination of the research findings indicates that Chabahar city has taken effective steps toward becoming a hub of entrepreneurship and sustainable urban development. The overall mean of the main dimensions of the entrepreneurship ecosystem was generally evaluated above the standard desirability level (value 3), suggesting the existence of a positive initial foundation. However, this overall positive assessment conceals substantive and functional differences across dimensions, requiring precise disaggregation for future strategy formulation. Focusing on strengths and addressing structural challenges will be the key to achieving comprehensive and sustainable development.

The results indicate that in the domain of policy and governance, basic supportive infrastructure is in place; particularly in promoting risk‑tolerant regulations and institutional intervention to remove legal barriers, which exhibited the most favorable status. Concurrently, social culture and norms are largely receptive to entrepreneurs, with the social status of entrepreneurs and the acceptance of failure as a learning experience at a desirable level. These two dimensions, as essential software layers, provide a solid foundation for innovative activities. Despite the general desirability in governance, two serious gaps were identified in this area: the absence of a formal strategic plan and the lack of a single point of contact for entrepreneurial services. These weaknesses suggest that existing support may be scattered and reactive rather than strategic and proactive. To transition from a “supportive” to a “proactive” status, the formulation of a strategic document and the facilitation of services through an integrated portal are essential. The human‑resources and knowledge dimension demonstrated the strongest performance across the entire ecosystem; the low unemployment rate among specialists and the attraction of skilled personnel indicate success in retaining and supplying technical talent. However, the knowledge and innovation sector, despite adequate university collaborations, suffers from a gap between theory and practice. The number of practical innovations (products and business models) and the transfer of specialized knowledge to businesses fall below the desirability level; this means that universities produce knowledge, but the operational outputs and commercialization of this knowledge require significant strengthening.

Keywords

Main Subjects


Al‑Harthi, M., & Al‑Amoudi, A. (2022). Smart tourism development in free zones: A case study of Saudi Arabia. International Journal of Innovation, 28(1), 2222045622100038.
Audretsch, D. B., Belitski, M., & Desai, S. (2024). Entrepreneurial ecosystems governance: Critical perspectives and steps forward. /10.1007, 49(2), 1–25. https://doi.org/10.1007/s10961-024-10172-9
Audretsch, D. B., Cunningham, J. A., Lehmann, E. E., & Menter, M. (2024). Entrepreneurial ecosystems, innovation, and regional development. Small Business Economics, 62(1), 33–56. https://doi.org/10.1007/s11187-023-00789-5.
Autio, E., Kenney, M., Mustar, P., Siegel, D., & Wright, M. (2018). Entrepreneurial innovation: The importance of context. Research Policy, 47(9), 1681–1698. https://doi.org/10.1016/j.respol.2018.01.015.
 Bakhsh, M., Karimi, H., & Hosseinpour, M. (2022). Identifying the role of accelerators in the development of the entrepreneurship ecosystem using an open innovation approach. Technology Growth Quarterly, 73, 26–34. [In Persian]. https://doi.org/10.61186/jstpi.21034.19.73.26
Bakhsham, M., Karimi, H., & Hosseinpour, M. (2022). Identifying the role of accelerators in the development of the entrepreneurial ecosystem using an open innovation approach. Technology Growth Quarterly, 73, 26–34. (In Persian).  https://doi.org/10.61186/jstpi.21034.19.73.26
Bhattacharya, S., & Sharma, A. (2019). Entrepreneurial ecosystem and tourism growth: A systematic literature review. Tourism Review, 74(2), 157–176. https://doi.org/10.1108/TR-02-2018-0028.
Bosma, N., Content, J., Sanders, M., & Stam, E. (2025). Different strokes for different folks: A configurational analysis of entrepreneurial ecosystems. Small Business Economics, 64(1), 1–20. https://doi.org/10.1007/s11187-024-01021-7
Carayannis, E. G., & Campbell, D. F. J. (2024). Innovation ecosystems and smart, sustainable regional development: Moving beyond infrastructure‑led growth. Journal of the Knowledge Economy, 15(2), 1–20. https://doi.org/10.1007/s13132-023-01345-7.
Costa, A., & Reis, R. (2021). The role of innovation in sustainable tourism development: A case study in Portuguese free trade zones. Journal of Sustainable Tourism, 29(3), 457–474. https://doi.org/10.1080/09669582.2020.1768454.
Damani, A., Zamani Moghaddam, A., Salarzehi, H., & Hashemi, S. A. (2020). Investigating and explaining the factors affecting human resource entrepreneurship in small and medium-sized enterprises of the Chabahar Free Trade Zone. Journal of Public Management Research, 50, 287–312. https://doi.org/10.22111/JMR.2020.32944.4953
Dimiyah, Z., & Peyvastehgar, A. (2021). Explaining the effects of entrepreneurship on sustainable urban development using a structural equation modeling approach (Case study: Yasuj City). Journal of Urban Research and Planning, 44, 39–54. (In Persian). https://doi.org/10.30495/JUPM.2021.4274.
Esmaeili, S., Ghaderi, E., Yavari Gohar, F., & Yasouri, M. (2022). Qualitative analysis of entrepreneurial ecosystem elements in the hospitality and tourism industry (Case study: Bandar Anzali County). Journal of Coastal Areas Geographical Studies, 3(4), 41–67. (In Persian). https://doi.org/10.22124/gscaj.2022.21792.1151.
Farole, T., & Moberg, L. (2024). Special economic zones and regional development in the global economy: New evidence and policy lessons. World Development, 176, 106135. https://doi.org/10.1016/j.worlddev.2023.106135.
Fayolle, A., & Patzelt, H. (2024). Regional learning and the development of high-growth potential firms. Small Business Economics, 63(2), 1–22. https://doi.org/10.1007/s11187-024-00910-z
Fernández‑Juricic, Z., & Proença, J. (2018). Smart tourism destinations: A review of the literature. Tourism Management, 63, 273–286. https://doi.org/10.1016/j.tourman.2017.06.005.
Gökçe, N., & Demirbag, E. (2020). The impact of entrepreneurial ecosystem on tourism performance: The mediating role of innovation. International Journal of Business and Management, 15(7), 1–13. Retrieved from https://www.ccsenet.org/journal/index.php/ijbm/article/view/0.
Grover, S., & Sharma, R. (2025). Social norms, failure tolerance, and entrepreneurial culture: Evidence from cross-country data. Entrepreneurship & Regional Development, 37(1–2), 1–20. https://doi.org/10.1080/08985626.2024.2409187
Hörisch, J., Kollat, J., & Brieger, S. A. (2024). Circular economy entrepreneurship and sustainability transitions. Business Strategy and the Environment, 33(1), 120–137. https://doi.org/10.1002/bse.3507
 Hosseini Kahnouj, S. R., & Sajasi Qeydari, H. (2024). Identifying key actors of the rural tourism entrepreneurship ecosystem and strategic analysis of their behavior pattern using a futures studies approach: A case study of Jiroft County. Geography and Development Journal, 75, 1–26. [In Persian]. https://doi.org/10.22111/GDIJ.2024.46827.3581
Ismaili, S., Ghaderi, I., Yavari Gohar, F., & Yasuri, M. (2022). Qualitative analysis of the elements of the entrepreneurship ecosystem in the hospitality and tourism industry (case study: Bandar Anzali County). Journal of Geographical Studies of Coastal Areas, 3(4), 41–67. [In Persian]. https://doi.org/10.22124/GSCAJ.2022.21792.1151
Jalilian, I., Kabaran Zadeh Ghadim, M. R., Shadenoosh, N., & Edalatian Shahriari, J. (2023). Developing an entrepreneurship ecosystem model with an innovative ecosystem approach to value creation in knowledge-based businesses. Journal of Economics and Business Research, 30, 65–77. [In Persian]. https://doi.org/10.30495/jstpi.2023.26707.3549
Jalilian, I., Kabaran Zadeh Ghadim, M. R., Shadenoosh, N., & Edalatian Shahriari, J. (2024). Developing an entrepreneurship ecosystem model with an employability capabilities approach in knowledge-based businesses. Journal of Business Management, 61, 17–38. [In Persian]. https://journals.iau.ir/article_700575.html
Kianpour, S., Hajian, M., & Abdi, M. (2025). The importance of innovation in the development of Iran’s entrepreneurship ecosystem. Technology Growth Quarterly, 83, 1–9. [In Persian]. https://doi.org/10.61882/jstpi.44955.21.83.1
Li, Y. (2023). Developing smart tourism ecosystems in free trade zones: Challenges and opportunities. Journal of Destination Marketing & Management, 20, 102046. https://doi.org/10.1016/j.jdmm.2023.102046.
Mousavi Baghestani, M. S., & Raft, E. (2023). The impact and importance of establishing a geopark on local community economic development and sustainable tourism in Chabahar. Research Approaches in Earth Sciences, 21, 31–42. http://www.jocs.ir.
Muhammad, A. (2024). The role of digital technologies in enhancing value chain resilience in smart tourism: A case study of free trade zones. Sustainability, 16(1), 101. https://doi.org/10.3390/su16010101
Ninh, T. T. T., & Hue, T. T. (2025). Sustainable entrepreneurial ecosystems: What are the main schools of thought and topical trends? Discover Sustainability, 6(1), Article 115. https://doi.org/10.1007/s43621-025-00931-5
Rabiei Mandajin, M. R., Gholami, A., Alizadeh, M., & Mohammadzadeh Larijani, F. (2022). Identifying and designing a rural tourism entrepreneurial ecosystem model. Journal of Tourism Management Studies, 57, 265–302. (In Persian). https://doi.org/10.22054/tms.2021.41629.2133
Raesi, S. B., Mollashahi, H., & Miri, G. R. (2024). Evaluating the components of the creative city in urban areas (Case study: Chabahar City). Quarterly Journal of Geography and Environmental Studies, 13(51), 6–20. (In Persian). https://doi.org/10.71740/ges.2024.1129513
Reisi, M., & Bazvand, S. (2024). Examining the effects of tourism entrepreneurship on regional development with a spatial planning approach (Case study: Chabahar, Konarak, Dashtiari, and Zarabad counties). Geographical Research and Development, 12(1), 117–134. https://doi.org/10.22034/GRD.2025.22423.1639
Shakiba, H., Delangizan, S., & Mohammadi Far, Y. (2020). Modeling and strategic analysis of the inclusive urban entrepreneurship ecosystem using game theory approach (case study: Kermanshah City). Management Improvement Quarterly, 49, 123–137. [In Persian], https://ensani.ir/file/download/article/1611395844-10359-99-247.pdf
Spigel, B., & Harrison, R. (2024). Toward a process theory of entrepreneurial ecosystems. Strategic Entrepreneurship Journal, 18(1), 1–21. https://doi.org/10.1002/sej.1472
Stam, E., & van de Ven, A. (2021). Entrepreneurial ecosystem elements. Small Business Economics, 56(2), 809–832. https://doi.org/10.1007/s11187-019-00270-6.
 Statistical Yearbook of Sistan and Baluchestan Province. (2022). Statistical Center of Iran. [In Persian].
UN‑Habitat. (2024). World Cities Report 2024: Sustainable urban transitions. United Nations Human Settlements Programme. https://unhabitat.org.
Varkiani Pour, N., & Cheraghali, M. R. (2022). Entrepreneurship value chain policy-making with a sustainable urban development approach (case study: Cities of Golestan Province). Journal of Urban Environmental Planning and Development, 5, 61–72. [In Persian]. https://doi.org/20.1001.1.27833496.1401.2.5.4.7
Varkiani Pour, N., Hosseini, S. M. R., Samiei, R., & Ashrafi, M. (2024). Analysis of factors affecting women’s entrepreneurship development and its effects on sustainable social development in urban areas. Journal of Applied Research in Geographical Sciences, 74, 368–388. [In Persian]. https://doi.org/10.61186/jgs.24.74.10
Zandmoghadam, M. R. (2023). Evaluation of effective policies on the tourism entrepreneurship ecosystem with emphasis on good governance: A case study of Mahdishahr County. Journal of Tourism Research and Sustainable Development, 6(3), 1–20. [In Persian]. http://www.trsd.ir/post.aspx?id=834